May 17, 2014

Estonian economy shrinks 1.9% in Q1

The previous time that the GDP fell was in the 1st quarter of 2010. Compared to the 4th quarter of 2013, the seasonally and working-day adjusted GDP decreased by 1.2%.

Energy was one of the areas that slowed down GDP growth the most, with consumers using less energy, and energy producers importing electricity to replace their own production.

Real estate and transport were other areas that saw a year-on-year decrease. The main reason for the deceleration in real estate was an accelerated rise in prices.

The growth of manufacturing, which is the main contributor to economic growth in Estonia, slowed down mainly due to a decrease in the manufacture of electronic and chemical products. However, the economy was bouyed by the manufacture of wood.